Shares of Cleveland-Cliffs (CLF) tumbled 5.77% in after-hours trading on Wednesday following the release of the company's disappointing first-quarter 2025 financial results. The steel and iron ore producer reported wider-than-expected losses and missed revenue estimates, prompting concerns among investors.

Cleveland-Cliffs reported Q1 adjusted earnings per share (EPS) of -$0.92, significantly below the analysts' consensus estimate of -$0.77. The company's revenue for the quarter came in at $4.6 billion, falling short of the expected $4.637 billion. Additionally, Cleveland-Cliffs posted a net loss of $483 million, much higher than the anticipated loss of $364.4 million. The adjusted EBITDA for the quarter was -$174 million, considerably worse than the estimated -$82.6 million.

In response to the challenging market conditions, Cleveland-Cliffs announced plans to idle six facilities, a move expected to result in annual savings of over $300 million. This strategic decision aims to streamline operations and improve the company's financial position. However, investors seem concerned about the short-term impact on production and the overall implications for the company's growth trajectory. As the steel industry continues to face headwinds, Cleveland-Cliffs' performance in the coming quarters will be closely watched by market participants.